Since way back in 2008 there has been some controversy over the issuing of telecoms licenses to newcomers to the mobile phone space in India, controversy which has apparently cost the Indian government quite a bit of lost cash, and now the Indian telecom regulator TRAI has recommended cancelling several telecoms licences.

According to an article over on the Economic Times, TRAI has recommended that the Indian government cancel some 38 telecoms licenses which include several that are held by Etisalat, Telenor and Sistema, with Sachin Pilot, the Junior Telecoms Minister informing lawmakers in the upper hose that after examination, the regulator had recommended cancelling a further 21 licenses.

Kapil Sibal, the Telecoms Minister has said the ministry will send out notices to the affected companies by the end of the week asking for explanations as to why the government should not cancel the licences.

Apparently the telecom companies have been granted a 60 grace in order to respond to the recommendation with numerous firms facing allegations of withholding facts whilst submitting their application for 2G licenses during 2007.

The reason the regulator made the recommendation of cancellation to the Indian Telecoms Ministry was due to the telecoms companies’ irregular roll out of network or non-compliance with the contract. Thus far it is estimated that the impropriety and irregularity in handing out licences by the ministry has cost the exchequer Rs 1.76 Lakh crore.